For Immediate Release
May 10, 2011
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Senate Committee Approves McIlhinney Shared-Work Amendment to Prevent Layoffs

HARRISBURG – The Senate Labor and Industry Committee unanimously approved an amendment to Senate Bill 1030 today that would preserve Pennsylvania jobs by giving employers alternatives to layoffs.

The amendment, introduced by Sen. Chuck McIlhinney (R-Bucks and Montgomery), would allow employers who are facing the prospect of layoffs to implement a temporary shared-work program that would reduce employee hours. Employees that are part of a shared-work plan would be eligible to receive unemployment compensation benefits for the lost time.

"The slow economic recovery is taking a serious toll on businesses across the state, and the General Assembly needs take action to prevent even more state residents from being forced to the unemployment line," McIlhinney said. "This bill will give businesses a viable alternative to eliminating jobs until the economy has a chance to fully recover from the recession."

Under a shared-work program, employers could reduce normal weekly hours by 20 to 40 percent. The shared-work plan would be voluntary for employers and must comply with all applicable federal labor laws.

The plan would also have to be reviewed and approved by the Pennsylvania Department of Labor. Participating employers must also agree to not lay off employees during the term of the plan and not hire or transfer new workers into the affected unit.

The shared-work amendment was added to Senate Bill 1030, legislation that would provide a mechanism for businesses to receive relief from charges for unemployment benefits claimed by ineligible claimants.

Senate Bill 1030 will now go to the full Senate for consideration.

CONTACT:

Heather Cevasco
(215) 489-5000